IndusInd Bank is an Indian bank headquartered in Pune. It is among the first new-generation private banks in India. It is the preferred banking partner for various government entities, PSUs and large corporates. IndusInd specialises in retail banking services and is also working on expanding its network of branches all across the country.
In this blog, we talk about the IndusInd Bank SWOT analysis, marketing strategy, marketing mix, and marketing campaigns.
Let us begin by getting to know more about InsusInd Bank’s history and business.
About IndusInd Bank
IndusInd Bank was inaugurated in April 1994 by then Union Finance Minister Dr. Manmohan Singh. It is a universal bank with a widespread banking footprint. It has more than 2.5 crore customers, over 5,000 distribution points and nearly 2,000 branches across the country. The bank started its operations with ₹100 crores in capital, of which ₹60 crores were raised by Indian residents and ₹40 crores were raised by NRIs.
IndusInd offers a wide array of products and services for individuals and corporates including microfinance, personal loans, personal and commercial vehicle loans, credit cards and SME loans.
Now that we understand the bank’s core services and offerings, let’s look into its marketing mix.
IndusInd Bank’s Marketing Mix
The marketing mix of a company talks about its product, pricing, place and promotion strategies. These are the primary factors that make up a company’s overall marketing. Let us thus take a look at IndusInd’s marketing mix to understand its marketing efforts better.
IndusInd Bank’s Product Strategy
- IndusInd Bank is one of the most prominent banking institutions in India.
- They offer a large number of services that make it easier for their clients to fulfill all their banking needs in one place.
- They are divided into five groups: Personal, NRI, Corporate, Business and Government & Financial Institutions. Thus catering to a variety of individuals and institutions.
IndusInd Bank’s Price Strategy
- The bank does not charge for savings accounts and thus charges for other services provided, like online banking and trading functionality.
- It paid 9% annual interest on home loans and a minimum of 10% on personal loans as of 2020.
- Many of the bank’s other pricing metrics are highly competitive.
IndusInd Bank’s Place and Distribution Strategy
- Services are provided by the company in both online and offline modes.
- The online mode ensures that customers can have access to their accounts anytime and anywhere easily.
- The offline mode mainly consists of local branches and ATMs. The bank has 1400 branches and 2203 ATMs in India and approximately 999 vehicle finance outlets.
IndusInd Bank’s Promotion Strategy
- IndusInd Bank employs various methods for promotion such as television ads, online promotion, print media and seasonal promotions.
- Many celebrities are associated with the bank to advertise its services.
- During festive seasons, it offers higher returns on fixed deposits as a way to attract customers.
- In order to incentivise customers into availing their services, the bank has reduced the duration for two-wheeler loans.
- IndusInd also partners with e-commerce sites to offer discounts upon purchases made from their credit and debit cards.
From their marketing mix, we can see that the bank is offering a wide variety of services at competitive prices, while maintaining its accessibility.
Let us dive deeper and further analyse its advantages, as well as its challenges, by conducting a SWOT analysis.
IndusInd Bank SWOT Analysis
A SWOT Analysis is a method of evaluating the strengths, weaknesses, opportunities, and threats of a business. It is a tool that helps in assessing the internal and external factors that impact a company. This in turn helps in sound decision-making on all fronts.
Following is the SWOT analysis for IndusInd Bank:
Strengths of IndusInd Bank
- Effectively uses its capital to generate profit.
- Growth in net profit with an increasing profit margin.
- Increasing revenue and profits
Weaknesses of IndusInd Bank
- In terms of capital structure, it lags behind several other banks.
- Relatively fewer physical branches and not as geographically spread through the country as other leading banks.
- Declining net cash flow.
Opportunities for IndusInd Bank
- Penetrating rural markets.
- Diversifying online banking and related services.
Threats to IndusInd Bank
- Intense competition.
- International entrants.
After thoroughly understanding the company’s position and all of its pain points, let’s finally get into its marketing strategy.
IndusInd Bank’s Marketing Strategy
We shall explain IndusInd’s marketing strategy through its STP i.e. Segmentation, Targeting, and Positioning. The process of segmenting a wide market into smaller segments based on customer needs, characteristics, and behaviour is known as market segmentation. IndusInd’s target segments are individuals and institutions looking to invest their money in the banking sector. The bank thus targets earning professionals, corporates, and HNIs (High Net Worth Individuals) since these are the audiences that would avail their services the most.
IndusInd’s USP is the satisfactory value proposition it offers to its customers. The bank has positioned itself as a reliable service provider that delivers exactly what the customer needs.
It has achieved this by conducting many successful campaigns that connect with its customers.
Here are some of the worthwhile marketing campaigns from the recent past.
Marketing Campaigns of IndusInd Bank
Induslnd Bank markets through TV ads, print, online advertising, social media and digital marketing channels. The company also works with famous celebrities as a means of promotion.
Its current brand ambassadors are Farhan Akhtar and Boman Irani. They are regularly seen in their advertisements, talking about IndusInd’s services. So we now know that IndusInd invests in its marketing while especially focusing on its campaigns. Let us hence glance through some of its marketing campaigns.
In 2019, IndusInd launched a new campaign titled ‘#Just25’ to celebrate the bank’s 25 years of existence in the industry. The campaign embodies the company’s ethos and achievements so far. The bank wanted to take a differentiated approach as compared to its competitors, who usually celebrate it as silver jubilees. IndusInd instead, looked at its 25th anniversary as a 25th birthday and thus titled it #Just25. Under the campaign, the company ran TVCs inspired by today’s 25-year-olds that are making a difference in the world. These ads were stories of the everyday youth facing challenges and overcoming them. This helped in creating an emotional connection with the audience.
Social Distance Banking
During the ongoing global pandemic, IndusInd carried out a three-part digital campaign. This campaign humorously informed the customers about the bank’s services that are now accessible online, right from the comfort of their homes. This campaign is effective in making sure that their business is not affected due to the geographical limitations imposed by the pandemic. It also demonstrates to the customers how to avail the bank’s services digitally.
As the country started lifting its lockdown and resuming life to some semblance of normalcy, IndusInd launched a campaign celebrating the spirit of India. The campaign talks about how the Indian people have persevered through the rough times. And are trying their best to make the most of the unfortunate situation. The ad salutes the heroes i.e. the common people in their own comeback stories.
The company, thus, creates engaging, creative campaigns that are relevant.
IndusInd is certainly one of the leading private sector banks in India. It is a well-known and established brand in the minds of the consumers. The bank caters to multiple segments, with its wide variety of service offerings and competitive pricing. Its marketing strategy and campaigns are very appealing and informative. And they are also up with the current times by making use of digital and social media marketing to expand their already sizable customer base. The bank consistently evolves and adapts its’ business and marketing strategies accurately. This can be seen in their efforts to encourage digital banking under the present circumstances. Although they could surely benefit from strengthening their geographical presence via their physical branches.
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